Local agencies: nondisclosure agreements., the official text

An act to add Article 2.4.4 (commencing with Section 53235.5) to Chapter 2 of Part 1 of Division 2 of Title 5 of the Government Code, relating to local government.

LEGISLATIVE COUNSEL'S DIGEST

Existing law, the legislative code of ethics, prohibits Members of the Legislature from entering into, or requesting that another party enter into, a nondisclosure agreement relating to the drafting, negotiation, or discussion of proposed legislation. Existing law also makes any nondisclosure agreement relating to the drafting, negotiation, or discussion of proposed legislation entered into after January 1, 2026, void and unenforceable. Existing law provides an exception for nondisclosure agreements, or portions thereof, that prevent only the disclosure of trade secrets, financial information, or proprietary information, as specified.
This bill would prohibit a local agency official, as defined, acting in their official capacity from entering into, or requesting that another individual enter into, a nondisclosure agreement relating to public business that precludes their ability to share information with fellow local agency officials serving on the same council, board, commission, district, or agency. The bill would require a local agency official in violation of that provision to, among other things, disclose the existence of the nondisclosure agreement, as specified, and would provide that these requirements imposed on a local agency official also apply to a local agency official acting in their official capacity who entered into, or requested that another individual enter into, a nondisclosure agreement described above before January 1, 2027. By imposing additional duties on local agency officials, the bill would impose a state-mandated local program. The bill would also make any nondisclosure agreement relating to public business that precludes the ability of a local agency official to share information with fellow local agency officials serving on the same council, board, commission, district, or agency and that is entered into after January 1, 2027, void and unenforceable.
The bill would prohibit an employee of a local agency or a local agency official acting in their official capacity from entering into, or requesting that another individual enter into, a nondisclosure agreement relating to public business that precludes their ability to share information with the local agency official who they serve or the governing body of the local agency that employs them. The bill would also make any nondisclosure agreement relating to public business that precludes the ability of a local agency official acting in their official capacity to share information with the local agency official who they serve under or the governing body of the local agency that employs them, and that is entered into after January 1, 2027, void and unenforceable. The bill would provide that it does not apply to a nondisclosure agreement that has been authorized by vote of the local agency’s governing body, with all members concurring, before the agreement’s execution. The bill would require a local agency official in violation of a prescribed provision to, among other things, disclose the existence of the nondisclosure agreement, as specified, and would provide that these requirements imposed on a local agency official also apply to a local agency official acting in their official capacity who entered into, or requested that another individual enter into, a nondisclosure agreement described above before January 1, 2027.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

The people of the State of California do enact as follows:

SECTION 1.
Article 2.4.4 (commencing with Section 53235.5) is added to Chapter 2 of Part 1 of Division 2 of Title 5 of the Government Code, to read:
2.4.4.
Nondisclosure Agreements53235.5.
(a) (1) (A) A local agency official acting in their official capacity shall not enter into, or request that another individual enter into, a nondisclosure agreement relating to public business that precludes their ability to share information with fellow local agency officials serving on the same council, board, commission, district, or agency.
(B) Notwithstanding any other law, a local agency official in violation of subparagraph (A) shall be subject to both of the following:
(i) The local agency official shall be disqualified from voting on, participating in deliberations on, or attempting to influence decisions related to the subject matter of the nondisclosure agreement.
(ii) The local agency official shall disclose the existence of the nondisclosure agreement, but not its contents to the extent that disclosure of the contents would violate the agreement, and recuse themselves from related matters.
(C) Notwithstanding any other law, subparagraph (B) shall also apply to a local agency official acting in their official capacity who entered into, or requested that another individual enter into, a nondisclosure agreement described in subparagraph (A) before January 1, 2027.
(2) Any nondisclosure agreement relating to public business that precludes the ability of a local agency official to share information with fellow local agency officials serving on the same council, board, commission, district, or agency and that is entered into or requested by a local agency official acting in their official capacity on or after January 1, 2027, shall be void and unenforceable.
(b) (1) An employee of a local agency or a local agency official acting in their official capacity shall not enter into, or request that another individual enter into, a nondisclosure agreement relating to public business that precludes their ability to share information with the local agency official who they serve or the governing body of the local agency that employs them.
(2) Any nondisclosure agreement relating to public business that precludes the ability of a local agency official acting in their official capacity to share information with the local agency official who they serve under or the governing body of the local agency that employs them, and that is entered into or requested by staff of a local agency official on or after January 1, 2027, shall be void and unenforceable.
(3) (A) Notwithstanding any other law, a local agency official in violation of paragraph (1) shall disclose the existence of the nondisclosure agreement, but not its content to the extent that disclosure of the contents would violate the agreement, and shall recuse themself from related matters.
(B) Notwithstanding any other law, subparagraph (A) shall also apply to a local agency official acting in their official capacity who entered into, or requested that another individual enter into, a nondisclosure agreement described in paragraph (1) before January 1, 2027.
(c) This article does not apply to a nondisclosure agreement that has been authorized by vote of the local agency’s governing body, with all members concurring, before the agreement’s execution.
(d) For purposes of this article, the following definitions apply:
(1) “Local agency” means a city, county, city and county, local agency formation commission, special district, school district, county office of education, or charter school.
(2) “Local agency official” means any elected or appointed official of a local agency, any employee of a local agency, or any person serving on a board or commission of a local agency.
(e) This article shall not be construed to imply that local agency officials are authorized or advised to enter into nondisclosure agreements precluding information from the public.

SEC. 2.
If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.